Association calls for fishery deregulation

JAKARTA (JP): The Association of Indonesian Fishery Entrepreneurs called on the government yesterday to further streamline industry regulations to boost competitiveness in overseas markets.

Association chairman Sudwikatmono said here yesterday the numerous licenses fishery companies were required by the government had contributed to the industry's high operating costs.

Sudwikatmono, also an executive of the publicly listed Indocement Prakarsa, said businesses in the industry had to get about 18 licenses from provincial administrations and relevant ministries in Jakarta in order to operate.

He said it cost a lot and took several trips to Jakarta to get the licenses.

"Ministries in Jakarta should only issue the main licenses. Less important permits should be provided by provincial administrations to reduce transportation costs," he was quoted by Antara as saying on the sidelines of the association's national congress.

He said the association had proposed simplifying the licensing process to the government.

"The government gave us a positive response. But I don't know when it is going to simplify the licensing," he said.

Fishery companies are also required to pay a number of levies to provincial administrations.

He said provincial administrations often created new rulings to raise money from fishery companies.

"We shall submit a detailed proposal to the government in the near future on the levies and retributions which need to be lifted," he said, adding that many shrimp farming companies had gone bankrupt under the weight of the levies and retributions.

Investors have voiced concern over official levies they must pay provincial administrations.

This was addressed by the government in a deregulation package in July which cut 42 different local taxes to only nine taxes, and slashed 192 categories of local levies to 30 categories.

The deregulation measures also prohibit the issuance of new taxes and levies by provincial administrations without approval from the Ministry of Home Affairs and Ministry of Finance.

But business says that despite the deregulation, regional governments continue to create new levies and taxes to add their income. (jsk)